About how much are Redbook values inflated?

Title says it all.

Also the Bluebook is estimated dealer/wholesale values, correct? I may just be trying too hard (or completely wrong in general), but if you averaged the Redbook and Bluebook values for a coin, would they be atleast a little closer to what they're worth? I know that greysheet is the best for values, but I was wondering if there was a way to get closer to actual value with Redbook.

Thanks

 

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I've never owned a BB, but my understanding is that the BB value is basically what a coin is worth. No one really pays full retail, so I'm pretty sure that dealers don't pay full BB, either.

 

You might be surprised at how many people pay full retail. You would be even more surprised at how many people pay several multiples of full retail. Have you ever checked the prices for coins on the late-night infomercials?

 

For what it's worth, they're not paying full retail. They're paying "70% off" ridiculous 350% of retail.

 

Depends on the coin always. There are many coins in the Redbook for which I'd pay 200%-300% or more of their listed prices.

For example, anyone selling a 1909 VDB in Proof 63 for $2750??? It would likely take 5 figures for such a coin.

Same goes for the rest of the Matte Proof Lincoln Cents... I'd love to get my hands on that Proof 63 1915 for only $400!!!

How about a 1909-O quarter in AU50 for $500??? It would easily take 2-3 times that amount to get one.

And how about low grade silver halves... the 2011 Redbook lists low grade Walkers and Franklin Halves at $8.50 each... I'd buy a truckload at those prices with the way silver has gone up (they melt for $13+ each today).

But yeah, the Redbook is way too high on many coins, mostly moderns and proof/mint sets, but that definitely isn't the rule.

 

My experience with RedBook prices is that across the board, they average 10-30% over GreySheet prices. That is an over-generalization, as Illini points out, there are cases in which RedBook prices are much lower than what market prices for a given coin are.

Also with the RedBook you have to be careful because it only comes out once a year. In a year like the last one, in which gold and silver bullion prices have shot through the roof, you are going to find that the RedBook value will be much lower than market prices for many coins. Heck, the bullion conversion value table for silver US coins in the 2011 RedBook tops out at $22/oz.

Still I find it to be a great reference, but if I'm hunting a specific coin, I'll cross reference the RB price with GreySheet and recent prices realized at auction (ebay/heritage).

 

The problem with pricing in the Redbook is it is outdated by the time you are able to page through it. They try to predict the market, and usually overdo it on prices, but in silver's case, I really can't blame them for not predicting where it would be. As of now, no one yet knows how much hiogher it may go.

On the other hand, they could update some of the higher graded issues, which have been relatively low compared to market value for several years now.

 

Seems there are many mixed reviews on the red book. As a new collector I have pre-ordered the 2012 book. Based on what people here have said, I intend to take every price with a grain of salt and make sure to do additional research when buying or selling. I will use this as a very general guide (expensive vs cheap).

From what I understand, in general, the modern coins are over priced and older coins are under priced. Please correct me if I'm wrong or should add something to this strategy.

 

That sounds like a very good plan. The Red Book is a great reference. You can use it for relative values (which coins are worth more than others). It is really handy for determining if a coin is a fantasy piece or not. Recently a poster here was asking opinions of an 1872 Trade Dollar he was thinking about buying. A quick look at the Red Book would have told him Trade Dollars were not minted until 1873 (so the piece was obviously a fake).

 

The actual value is fluctuating and is only what someone is willing to pay .

 

I just started getting my price education the last couple months. The process I use is easy. I pick out several coins that are of a $50.00 range RED BOOK. I check 10 local coin shops. The four flea markets I have in my area that have a dozen coin sellers. And I check the internet. The pricing you will find is no where close to any of book guides. The price is 10% t0 20% percent higher. Forget Silver I am talking nickels and cents. I believe the internet will change pricing and control the coin industry from now and in the future.
Thanks BIG Ed

 

biged239
You have 10 local coin shops in your area? I live in the Chicago market and I don't have that many. Maybe you mean 10 coin dealers at a local show.

 

Do you mean the dealers are asking 10-20% above Red Book price, or that the Red Book price is 10-20% above what the dealers are asking?

And if you think the Internet will change pricing, what prices are you seeing there for these coins?

 

I live in Naples Florida. Yes between Naples, Ft Meyers, Sarasota, Tampa, and Orlando I have dozens to go to. All these places are less than 2 hours from me. Florida is a hobby state.
Thanks Big Ed

 

jeffB
For Indian cents Red Book will say the coin is worth lets say AU grade $45.00. You will be lucky to buy it for less than $60.00

The internet is doing to the coin industry what it did to the Antique Lure industry. What was a good price guide line for collectors was blown out of the water because a lot of people that did not know much was paying high prices for low grades. If enough people change the price of something, then that is the new price.
Thanks Big Ed

 

Redbook prices are set by dealers for the most part. Expect them to be high-end retail pricing.

Generally, dealers buy coins at rates that center around greysheet bid.

I've yet to find a west central Florida B&M that doesn't suck, and that's about all I'm going to say about that.

 

Leadfoot
I must not of stated what I was saying very good. Sorry. Red Book is very low in most cases that I find in purchasing coins. I purchase a lot of coins right now because I am just getting back in collecting. (Bad for me because of silver prices). I am seeing prices for no date buffalo nickels selling $20 to $40 dollars a roll Wheat cents $6 to $8 dollars a roll. Coins that are AG or G selling for AU prices. This is all way over Red Book Prices. I am not selling or trading anything right now only buying. Bad time to be buying I know but I have the bug and want to put together a good starter set now.

 

You really ought to start looking on eBay -- your local dealers are ripping you off.

I got a bag of 200 dateless Buffalos for $30 shipped -- that's low, but it's easy to find them for $50, which amounts to $10 a roll. (They weren't all dateless, either, as it turns out.) I just did a search for "dateless buffalo" Buy It Now, and there's one listing for 40 coins, one roll, at $12, with free shipping.

Lots of folks are selling quite nice rolls of Wheaties around the price you quote, but you can get them under $5 a roll if you buy more -- and while these are probably searched for keys, they still might have a better assortment than what you're finding locally.

Anything silver will be way over the Red Book price, but that's silver's fault, not the fault of dealers or publishers. But again, if you search eBay patiently and carefully enough, you can get silver significantly below spot value.

If you're shopping for low-grade coins, you have little to lose by using eBay, and potentially much to gain. If your local dealers are charging that much for low-end coins, don't patronize them!